With the number of empty dealerships expected to increase this year, analysts are predicting commercial property prices to drop by more than 50% as supply increases but demand falls.

The slump in the market is expected to reach new
lows with £22.7 billion of property debt scheduled to be refinanced, according to property consultants King Sturge.

A spokesman for King Sturge said: “Property companies will be forced to sell assets in order to manage their debts even if they are forced to sell at a loss.”

The value of commercial property has fallen 31.5% since its peak in 2007, according to figures from property analyst IPD. 

However, King Sturge believes the current economic climate will have much more of an effect, forcing a drop of more than 50% in 2009.